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Posted by Joseph Cotterill on Jun 21 08:05. 1 comment | Share

Comment, analysis, and other offerings from Tuesday’s FT,Gideon Rachman: Political union cannot fix the euro
As the Greek crisis worsens, so voices are being raised demanding new and more radical approaches, More…

Comment, analysis, and other offerings from Tuesday’s FT,

Gideon Rachman: Political union cannot fix the euro
As the Greek crisis worsens, so voices are being raised demanding new and more radical approaches, says the FT columnist. Forget the sticking plaster bail-outs and slice-by-slice austerity packages. The ultimate solution to the eurozone debt crisis is “political union”. Those who argue it seem to believe that Europe’s problem is institutional. This is a profound misdiagnosis of the crisis. The real problem is political and cultural.

Steven Rattner: Savour the sweet scent of Germany’s success
At first glance, Germany’s decision not to insist on compulsory participation by private lenders in the latest bail-out of Greece may seem like a defeat for Chancellor Angela Merkel and Europe’s largest economy. But appearances can be deceiving, writes Rattner, formerly counsellor to the secretary of the Treasury. On another, more important level, Germany came out of the latest round of brinkmanship exactly where it may well have wanted to be – with the common currency intact and Germany able to motor forward.

Edward Altman and Maurizio Esentato: Italy will fight last stand in debt crisis war
Some analysts feel that Spain is the last bastion for the euro’s survival. We do not, write Altman, the Max L. Heine Professor of Finance at NYU Stern School of Business, and Esentato, CEO and founder of Classis Capital. We believe that the final battle will be fought on the picturesque shores of Italy, resulting in Rome’s emergence as either hero or villain with respect to the survival of the euro. Most European politicians dearly want the “run” on several of its “club” members to end and its rescues to restore confidence. This is, unfortunately, a dream that is likely to be shattered as the next domino – Spain – suffers the scrutiny of intense solvency analysis.


Analysis: Technology — the internet bubble
Expectations are high for the new ‘social media’ wave of internet stocks, the FT’s Richard Waters reports. But the reality so far looks decidedly mixed. Few have yet made it to the stock market, but public filings made to prepare for listings, including by discount coupon company Groupon and internet phone service Skype, have provided the first real insights into their businesses. Based on the evidence to date, investors and other industry experts say the number of significant new companies likely to emerge from the latest internet boom is small.

News analysis: Sifi badge no easy solution to turning back the clocks
Within the next few weeks regulators should have finalised a plan to split the world’s banks into large and small, imposing potentially steep additional capital charges on the top 30 or so deemed “systemically important financial institutions”, or Sifis, the FT’s Patrick Jenkins reports. Some banks argue that the Sifis category is unfair. Perhaps, but more importantly it is unwise. The Sifi badge will be horribly counter-productive, largely because it turns the current environment of implicit state guarantees into a de facto explicit one.

Lex on Japan and the rise of the machines
Japan’s industrial planners seem obsessed with the new, Lex says. The government’s 21 “National Strategic Projects” for the “revitalisation of Japan for the 21st century,” include a lot of talk of photovoltaic power and geothermal energy – but nothing at all on dump-trucks and cranes. Yet if May’s export numbers are any guide, these unglamorous stalwarts of old technology will be vital to the country’s economic recovery.

Brussels blog: Will Greece put Europe’s six pack on ice?
The European parliament and the member states are meant to be thrashing out sprawling “six pack” legislation which would force eurozone countries to rein in spending and make their economies more competitive, the FT’s Joshua Chaffin reports. It is one of the eurozone’s chief policy responses to a crippling debt crisis. But the Greek crisis is so consuming that there is little energy or capacity to complete the six pack, let alone anything else.

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